Chinese Premier Wen Jiabao speaks at a press conference after the closing ceremony of the National People's Congress, in Beijing's Great Hall of the People Friday March 16, 2007. [AP]

China has to improve supervision of its stock markets and build an open, transparent financial system, Premier Wen Jiabao said Friday, two weeks after a plunge in the Chinese market triggered a global sell-off.

"Our goal is to build a mature capital market," Wen said at a news conference.

The government must improve the quality of publicly traded Chinese companies, institute an "open, fair and transparent" market and improve market oversight, the premier said.

"We also need to encourage and do a good job in the timely disclosure of information in the stock market," Wen said.

The premier didn't mention the turmoil of February 27, when a 9 percent drop in the Shanghait stock index set off shock waves that dragged down markets in New York, Hong Kong, London and elsewhere.

China's stock markets have grown rapidly in recent years, but are subject to wild swings in prices and accusations of insider trading and other abuses.

Most of the companies traded are government-owned, and economists say the market's performance has little connection to the overall health of the Chinese economy.

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